PSEi back at 6,700

THE LOCAL stock barometer returned to the 6,700 level Monday as hopes for monetary stimulus lifted most regional markets.

The Philippine Stock Exchange index (PSEi) added 13.74 points or 0.21 percent to close at 6,701.36, swinging from negative to positive territory during the day.

Luis Gerardo Limlingan, managing director at Regina Capital, said the mixed trading sentiment was due to the Bank of Japan’s move to sanction negative interest rate policy that was, however, offset by the weak China manufacturing gauge and the extremely tough times for oil-exporting nations and producers this 2016.

Limlingan sees a growing casualty list in the value chain as the Middle East is shaken up by the slump in oil prices. In the US, on the other hand, he said earnings reports have generally not been pretty halfway through the reporting season for the fourth quarter.

“The US markets have bounced, but in our view its technically unconvincing and a further test of 1,800 seems more likely than not after a fourth-quarter GDP (gross domestic product) number of only 0.7 percent,” he said.

At the local market, total value turnover stood at P8.56 billion. There were 105 advancers that edged out 57 decliners while 40 stocks were unchanged. Doris Dumlao-Abadilla